Perfect Foresight Dynamics in Binary Supermodular Games

This paper studies equilibrium selection in binary supermodular games
based on perfect foresight dynamics.
We provide complete characterizations of absorbing and globally accessible equilibria
and apply them to two subclasses of games.
First, for unanimity games,
it is shown that our selection criterion is not in agreement with
that in terms of Nash products,
and an example is presented in which two strict Nash equilibria are simultaneously globally accessible
when the friction is sufficiently small.
Second, a class of games with invariant diagonal are proposed
and shown to generically admit an absorbing and globally accessible equilibrium for small frictions.
Journal of Economic Literature Classification Numbers: C72, C73.